Economic, trade and investment cooperation between the UAE and India constitutes a model of constructive international cooperation to stimulate investments and intra-trade, which culminated in the Comprehensive Economic Partnership Agreement between the two friendly countries, which in turn contributed to creating more opportunities for joint sustainable growth for the economies of the two countries.
The momentum of the comprehensive economic partnership between the two countries reflects the strength of bilateral relations in all fields, especially economic relations that are witnessing continuous development based on commonalities in visions and strategies aimed at expanding the sectors of the new economy, as they are vital sectors that support the sustainable growth and competitiveness of their economy and in line with the directives of the wise leadership. In both countries.
The comprehensive economic partnership agreement between the UAE and India, which was signed on February 18, 2022, is the first bilateral agreement concluded by the country within the program of global economic agreements aimed at expanding the country’s network of trading partners with markets of regional and global strategic importance on the map of international trade. It was also the first of its kind. Which India concludes with a country in the Middle East and North Africa region. The agreement is expected to contribute to increasing bilateral non-oil trade to $100 billion annually by 2030.
Economic cooperation between the UAE and India is witnessing continued momentum in the fields and activities of the circular economy, tourism, aviation, entrepreneurship, small and medium enterprises, renewable energy, technology, digital transformation and transportation, in light of their economic partnership, the potential that the two countries enjoy and their mutual desire to strengthen the bonds of cooperation in areas of common interest, which has contributed In stimulating the economic growth of the two countries and creating new and promising opportunities for the Emirati and Indian business communities.
The UAE and India have adopted a number of joint initiatives and action plans to support the expansion of new economy sectors in their markets, stimulate the business growth of Emirati and Indian startups, and provide them with more benefits and incentives to ensure an increase in their contribution to supporting the growth of the gross domestic product of the two countries.
India is one of the five largest markets exporting tourism to the country, and the UAE received more than 3.1 million Indian tourists during 2022, an increase of 900,000 visitors compared to 2021, while air traffic between the two countries witnesses more than 1,800 flights per month via UAE national carriers, so that the UAE and India continue the path of joint growth. Between the two friendly countries, as the implementation of the agreement was reflected in an increase in the flow of non-oil trade between the two countries, which recorded 91 billion dirhams during the first half of the year 2023.
The historic agreement embodies the two countries' shared belief in the power of openness and economic integration, which contributes to improving access to markets for service exports, facilitating investment flows to vital sectors, and providing a platform for small and medium-sized companies that allows them to cooperate and expand.
The Emirati-Indian partnership ensures the ability of the two countries to benefit from the global economic map, especially the pivotal role that the Asian continent plays in the global economic map. According to the International Monetary Fund, the Asia-Pacific region will lead global growth this year with an expected increase in GDP of 4.6%. Southeast Asia and South Asia, excluding China, also lead the world in export and import growth over the next five years.
The UAE markets host more than 83,000 Indian companies operating in various fields, while India is witnessing a continuous increase in the number of Emirati companies active in many strategic sectors. During the next phase, we aim to increase the number of companies in the markets of the two countries, especially those whose activities focus on the new economy sectors, to contribute to Providing thousands of sustainable jobs and supporting comprehensive development efforts.
The UAE's accession to the BRICS alliance, of which India is one of the founders, is in addition to the country's pivotal position in the economic corridor between India, the Middle East and Europe, which Abu Dhabi played an important role in inaugurating. It will contribute to formulating a new vision for the future of bilateral cooperation between the two countries, keeping pace with the great momentum and opportunities. The expected economic implications that these developments will have and will have a positive impact on the growth of the gross domestic product of the two countries.
The UAE and India continue to enhance cooperation under the umbrella of their Comprehensive Economic Partnership Agreement, which provides many benefits and incentives that business communities can benefit from to continue growth and prosperity and create new paths for partnership, especially in the health, agricultural, educational, climate technology sectors and other sectors of the new economy.
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